Kinetic Concepts Inc.

Earnings per share were 98 cents compared to analysts' estimates of 96 cents.

Revenue grew 6% to $491.3 million compared to the second quarter of 2008. Foreign currency translation negatively effected revenue by 4% in the quarter.

The company saw strength in the Worldwide V.A.C Therapy segment as revenue rose 3% to $349.4 million year over year.

Regenerative Medicine, or LifeCell, which accounts for 15% of total revenue, climbed 22% to $71.1 million on a pro forma basis. The company completed its acquisition of LifeCell in May 2008.

Sales of Strattice, its porcine-based regenerative tissue matrix which launched in Mar 2008, generated 31% of the total LifeCell sales in the quarter, up from 10% of the total in the year ago period.

Reaffirmed 2009 Guidance

The company reaffirmed prior 2009 earnings per share guidance in the range of $3.95 to $4.10.

Covering analysts responded by raising full-year consensus estimates by 15 cents to $3.97 per share to be in line with the company's forecast.

Third-quarter estimates fell, however, to 88 cents from $1.02 per share. in the last week even though 4 out of 8 covering analysts raised and 2 lowered during that period.

Value Fundamentals

Kinetic Concepts, which manufactures health care products for advanced wound care, negative pressure wound therapy and therapeutic support systems, was a Zacks #1 Rank (strong buy) stock when I last reviewed it on Jul 1. It is now a Zacks #2 Rank (buy) stock.

It is still cheap, trading at just 7.4x forward earnings.

Read the Jul 1 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Goldman Sachs Group Inc. (GS - Analyst Report), the global financial services firm, recently reported a much better than expected second quarter that surprised by 40.06%. While everyone is talking about the blow-out quarter, not many people realize that Goldman Sachs is a value stock and trades at just 10x forward earnings. Read the full article.

Tyco International Ltd. (TYC - Analyst Report), the global manufacturer of various industrial products, has surprised on estimates the last four quarters by an average of 26.56%. It is expected to report third quarter results next week. Read the full article.

Mirant Corporation (MIR), the electricity provider, has surprised on estimates 3 out of the last 4 quarters by an average of 9.87%. The stock is cheap. MIR trades at just 5.4x forward earnings. Read the full article.

Western Digital Corporation (WDC - Analyst Report), the hard drive manufacturer, is set to report fourth-quarter 2009 earnings next week. The company has surprised 6 consecutive quarters. Even though the stock has more than doubled since its March lows, it still isn't expensive. WDC trades at 13.9x forward earnings. Read the full article.

Read the full analyst report on KCI

Read the full analyst report on WDC

Read the full analyst report on MIR

Read the full analyst report on TYC

Read the full analyst report on GS